This Iowa County’s Experience Shows What Wind Farms Can Offer Rural Communities

Iowa took full advantage of its status as one of the windiest states in the nation by developing a robust wind energy infrastructure that generates nearly 60 percent of its electricity. A recent study by the community development financial institution Center for Rural Affairs shows how much one rural county in particular benefited from clean power from the late 2000s onward.

Located on the state’s northern border, Howard County is home to nearly 10,000 people and installed its first wind farm in 2008. Today, the county hosts nearly 150 turbines, and in 2024, the turbines provided more than $2.7 million in tax revenue — about 15 percent of total revenues, according to the study. Through a special financing method, the county has spent more than $24 million of that on bridges, roads, public parks, and conservation projects at no extra cost to county residents.

“In terms of lessons learned, Howard County is a strong case study — not just in how they used the revenue, but in showing what wind turbine development can offer when supported by thoughtful zoning regulations,” Alex Delworth, senior policy associate with the Center for Rural Affairs, told TriplePundit. “Their approach took local considerations into account while still enabling development.”

Howard County adopted an ordinance to ensure wind developers meet clear standards while protecting nearby residents from potential long-term impacts, Delworth said. “At the same time, wind projects brought financial benefits that funded local infrastructure and parks — investments that might have required tax increases otherwise.” 

In Iowa, wind energy is taxed using a special valuation method, where the taxable value starts at zero and increases by 5 percent annually, reaching 30 percent by year seven, Delworth said. For example, a $30 million project would be taxed on roughly $9 million by that point.

What makes Howard County stand out is that it uses tax increment financing on top of the state-wide valuation method, a tool many counties in Iowa have adopted for economic development, Delworth said. 

“When land is rezoned or developed, like with wind turbines, the county places it into an urban renewal area,” Delworth said. “They then collect taxes only on the increase in property value — the ‘increment’ — above the original base value.”

That incremental tax revenue is funneled into a special fund the county can use for infrastructure or quality-of-life improvements like roads, parks and public buildings. Without tax increment financing, that revenue would just go to the standard taxing entities like schools or general county operations. 

“It’s a bit complex but essentially, each time new turbines are added, the county amends its original urban renewal plan to include the new development. They then designate specific projects they want to complete and allocate funding accordingly,” Delworth said. “Over the years, this structure has allowed the county to make targeted investments while managing wind development in a financially strategic way.”

Local farmers also receive land-lease payments for turbines on their property, Neil Shaffer, president of the Howard County Farm Bureau, told 3p. That additional money is used to reinvest in farming operations.

Some of the initial concerns about wind turbines from farmers had to do with taking land out of production and the potential impact on tile systems used to drain water from fields, which are common in Howard County, Shaffer said.

“That said, farmers were compensated for both road access and the footprint of the wind turbines, which in comparison to other uses like solar farms, is actually quite small,” Shaffer said. “The access roads that were built — essentially like alleyways through the farm — ended up being useful for planting and harvesting. Many farmers appreciated the improved access to the back sides of their fields.”

Many officials in other counties considering wind farm development are shocked to learn about the amount of revenue it can generate, Paul Lovell, executive director of the nonprofit Howard County Energy District, told 3p. 

For example, the Riceville Community School District, which spans areas with many wind turbines in Howard County and neighboring Mitchell County, benefits from increased property valuations that led to one of the state's lowest school tax levies. Contrary to claims that turbines drive people away, Riceville is experiencing enrollment growth, challenging the notion that wind development deters community growth, Lovell said.

Currently, concerns about wind turbine projects are more about how the development is handled and communicated, not about wind power itself, Lovell said. 

“Some of the opposition we see stems from misinformation, but another major factor is a perceived lack of transparency and fairness,” Lovell said. “Too often, these companies treat the process as purely transactional rather than collaborative. While I hope counties remain open-minded about wind energy, I also believe developers need to be more transparent, especially during the planning stages. They should involve the community early and engage in open communication throughout the process.”